IMF Board Endorses New $124.3 Million Resilience and Sustainability Facility for Burkina Faso
The Executive Board of the International Monetary Fund (IMF) has completed the fourth review of Burkina Faso’s 48-month Extended Credit Facility (ECF) arrangement, paving the way for the immediate disbursement of SDR 24.08 million, equivalent to about US$33.2 million.
This latest disbursement brings total IMF financial support under the ECF programme to SDR 120.4 million (approximately US$165.8 million) since the arrangement was approved on September 21, 2023.
In addition, the IMF Executive Board approved a new arrangement under the Resilience and Sustainability Facility (RSF) for Burkina Faso, amounting to SDR 90.3 million (around US$124.3 million) and running until September 20, 2027. Disbursements under the RSF will commence upon completion of the first review of the arrangement. The RSF-supported reforms are expected to strengthen fiscal resilience to shocks, integrate climate considerations into public financial management, improve the performance of state-owned enterprises in climate-sensitive sectors, and catalyse green financing.
According to the IMF, Burkina Faso’s real Gross Domestic Product (GDP) growth accelerated to an estimated 5.0 percent in 2025, up from 4.8 percent in 2024. The Fund attributed the improved growth performance to higher gold prices, a strong supply response from artisanal mining, and mining sector reforms, which more than offset a slowdown in the services sector. Over the medium term, real GDP growth is projected to remain within the 4.5 to 5.0 percent range, subject to improvements in the security situation.
Average inflation slowed sharply in 2025 to -0.5 percent, largely due to declining food prices, and is projected to converge to about 2.0 percent over the medium term.
The IMF noted that Burkina Faso’s external position has strengthened, supported by higher net exports and improved terms of trade. The external current account is projected to shift from a deficit of 3.4 percent of GDP in 2024 to surpluses of 1.1 percent in 2025 and 0.8 percent in 2026, driven mainly by elevated gold prices. While efforts to boost gold production are expected to increase imports of mining equipment, energy imports are projected to remain contained amid a stable global oil price outlook.
On the fiscal front, consolidation efforts remain on track. The fiscal deficit for 2025 is estimated to have remained well below the programme ceiling of 4.0 percent of GDP, reflecting strong revenue performance and disciplined expenditure management. This represents a fiscal tightening of about 2.3 percentage points of GDP compared to 2024, largely driven by higher mining revenues, wage bill control, and restraint in capital spending.
Programme implementation under the ECF was assessed as satisfactory. The authorities met all end-June 2025 quantitative performance criteria, all continuous performance criteria, and all but one indicative target, which was missed by less than 0.1 percent of GDP. All end-September indicative targets were also met, except for the ceiling on VAT refund arrears, which was exceeded marginally by 0.02 percent of GDP.
Progress on structural reforms was also noted, with eight out of ten structural benchmarks achieved. The missed end-June benchmark on energy sector reform was subsequently implemented, while three prior actions were taken to mitigate delays in publishing the Governance Diagnostic Assessment (GDA). The authorities have already implemented six of the eleven priority recommendations under the GDA, with the remaining reforms expected to be completed within the programme period.
Commenting on the review, IMF Deputy Managing Director and Acting Chair, Kenji Okamura, said Burkina Faso’s economy has shown resilience despite persistent security and humanitarian challenges.
“Sound economic policies to improve governance and domestic revenue mobilisation have contributed to creating fiscal space and supporting recovery, while keeping inflation under control and public debt on a sustainable path,” he stated.
Mr. Okamura emphasised the need for continued reform implementation to support broad-based growth, strengthen the private sector environment, and reduce vulnerability to external shocks, particularly commodity price fluctuations. He also underscored the importance of safeguarding spending on health, education, and social protection, even as fiscal consolidation continues.
He further highlighted resilience-building as a key priority, noting that the RSF programme would help reduce balance-of-payments risks, especially by lowering the need for emergency food imports, while strengthening climate resilience in agriculture, which supports about 80 percent of the population.
